How to Choose the "Right" Brokerage

When I ask my students what they are most concerned about when getting into real estate, one answer is always in the top five concerns: “How do I pick the “right” brokerage company for me?” Choosing the right brokerage company is one of the most important decisions a new real estate agent can make. The brokerage you choose can have a significant impact on your success as a real estate agent. With so many brokerage companies to choose from, it can be overwhelming to decide which one is the right fit for you. In this post, I’ll give you tips on how a new real estate agent should pick the brokerage company they want to join.

1. Company Culture: When considering a brokerage company, it’s important to pay attention to the company culture. The culture of a brokerage can have a significant impact on your success and your overall experience as an agent. Do they have a supportive and collaborative environment? Are they focused on agent development and training? Do they have a positive reputation in the community? These are all important questions to ask when evaluating a brokerage company.
2. Training and Support: As a new agent, you will need training and support to help you navigate the industry and build your business. Look for a brokerage that offers comprehensive training and ongoing support. This can include things like mentorship programs, coaching, marketing support, and access to resources and technology that can help you succeed.
3. Marketing and Branding: Branding and marketing are crucial components of success in the real estate industry. Look for a brokerage that has a strong brand and marketing presence in the community. This can include things like a professional website, social media presence, and advertising campaigns. Additionally, some brokerages may offer marketing support and resources to their agents, which can be a valuable asset as you build your business.
4. Location and Market: Consider the location and market that the brokerage company serves. Is the brokerage located in an area that is a good fit for your target market? Are they active in the types of properties or markets that you want to specialize in? Understanding the market and the brokerage’s place in it can help you make an informed decision.
5. Commission Structure: Commission structure is another important factor to consider when choosing a brokerage company. The commission split between the agent and the brokerage can vary greatly from one company to another. It’s important to understand the commission structure and how it will impact your income as an agent. Additionally, some brokerages may offer different commission splits based on the amount of business you bring in, so it’s important to understand the potential for growth as well.

When evaluating different brokerage companies, it’s important to ask questions to get a clear understanding of their package and how it differs from others. Some questions you may want to ask include:

• What type of training and support do you offer for new agents?
• Do you have a mentorship program?
• What type of marketing and branding support do you offer?
• What is the company culture like?
• What types of properties or markets do you specialize in?
• What is the commission structure and how does it compare to other brokerages in the area?

At I Love Real Estate School we give our students a list of 54 questions to ask on an interview because we believe that you are interviewing the brokerage as much as they’re interviewing you. Additionally, when considering the overall package offered by different brokerages, pay attention to factors like the commission split, fees, and potential for growth. Some brokerages may offer lower commission splits but also have lower fees or a higher potential for growth. Others may offer higher commission splits but have more fees or a more competitive market. Also, make sure to look at what happens to your compensation on deals that haven’t closed should you ever leave the brokerage.

When determining which brokerage to join you need to take the emotion out of the decision and make sure you’re comparing apples to apples. While I understand that this is an exciting decision you need to control your emotions. You are looking for the brokerage that is going to best support your goals in real estate. My advice is to not make the decision to join a brokerage on your first visit to that office. After your appointment, go home and evaluate all of their answers to your questions and then, if you feel it’s the right fit for you, you can let them know you intend to join them.

One last thing for you to consider. As important as it is to pick the “right” brokerage for you, keep in mind that if it turns out not to be what you were expecting or promised, you are not stuck there! You made a mistake. It’s okay. That happens. You can always decide to take your talents to another brokerage which  may be perfect for you.